Exercise 14-24 On December 31, 2020, Green Bank enters into a debt restructuring agreement with Shamrock Inc., which is now experiencing financial trouble. The bank agrees to restructure a $2.3-milion, 10 note receivable issued at par by the following modifications: 1. Reducing the principal obligation from 52 million to $2.19 million 2. Extending the maturity date from December 31, 2020, to December 31, 2023 3. Reducing the interest rate from 10 to 8% Shamrock pays interest at the end of each year. On January 1, 2024, Shamrock Inc, pays $2.19 million in cash to Green Bank. Shamrock prepares financial statements in accordance with IFRS 9. Prepare an entry at December 31, 2020, based on the results of your calculation. (Round answers to decimal aces, .. 5,275. Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If he entry is required, select "No Entry for the account cities and enter for the amounts) Date Debit Credit Account Titles and Explanation December 31, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare an effective interest amortization table for the remaining term of the note (Round answers to decimal places . 5.250.) SHAMROCK INC. INTEREST BAMMENLAHDEN Exercise 14-24 On December 31, 2020, Green Bank enters into a debt restructuring agreement with Shamrock Inc., which is now experiencing financial trouble. The bank agrees to restructure a $2.3-milion, 10 note receivable issued at par by the following modifications: 1. Reducing the principal obligation from 52 million to $2.19 million 2. Extending the maturity date from December 31, 2020, to December 31, 2023 3. Reducing the interest rate from 10 to 8% Shamrock pays interest at the end of each year. On January 1, 2024, Shamrock Inc, pays $2.19 million in cash to Green Bank. Shamrock prepares financial statements in accordance with IFRS 9. Prepare an entry at December 31, 2020, based on the results of your calculation. (Round answers to decimal aces, .. 5,275. Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If he entry is required, select "No Entry for the account cities and enter for the amounts) Date Debit Credit Account Titles and Explanation December 31, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare an effective interest amortization table for the remaining term of the note (Round answers to decimal places . 5.250.) SHAMROCK INC. INTEREST BAMMENLAHDEN
